UBS AG (NYSE: UBS) is facing tough opposition to its bonus plans
Employees are rewarded with competitive salaries, company paid healthcare, three weeks of paid leave, bonus plans
, professional training and company sponsored lunches and other periodic team-building events.
Consequently, employers with discretionary bonus plans
that restrict employees' right to receive a bonus may not be able to recognize the liability and take a deduction for bonus payments until the year after the related services are performed.
The pay consultant went on to say that bonus plans
should ultimately be developed in the context of a broader compensation philosophy and strategy that seeks to create line of site between a company's vision, its business plan and strategy, the roles and expectations associated with those elements and the financial rewards attached to meeting established success standards.
As a result of increased regulation, heightened shareholder scrutiny and board activism, the percentage of REITs with annual cash bonus plans
solely based on subjective criteria (as opposed to formulaic/objective criteria) decreased significantly from 2008 (46%) to 2011 (37%).
The reports come as Britain's biggest banks are due to unveil their bonus plans
and annual results.
The requirement that an employee actually be employed on the date a bonus is paid is not a provision that many employers want to remove from their bonus plans
On their behalf we assess executives' pay and bonus plans
to see they are good governance, and we operate a traffic-light system.
Public companies typically structure their annual and three-year bonus plans
for their "top-five" executives to qualify as "performance-based compensation" under the $1 million deduction cap of Code section 162(m).
Lloyds has already revealed its bonus plans
, with outgoing chief executive Eric Daniels being awarded pounds 1.45 million for 2010.